EURO FALLS TO FOUR-YEAR LOW AGAINST DOLLAR
Baku, May 17 (AZERTAC). The euro has fallen to a four-year low against the dollar, after being hit by renewed fears over the strength of the eurozone economy.
The euro fell to $1.2237, while one pound was worth 1.1702 euros.
Despite the huge sums of money pledged in support for eurozone countries, severe austerity measures are needed to cut budget deficits and debt.
This is affecting the value of the euro as analysts worry the cuts will hold back economic growth in the eurozone.
John Kyriakopoulos, from the National Australia Bank in Sydney, said: “Concerns that severe fiscal austerity in the eurozone will crush growth in the region continues to weigh (on the euro).”
Earlier this month, the European Union and International Monetary Fund agreed a package worth 750bn euros to try to prevent the Greek crisis from spreading to other weak eurozone economies.
But despite the initial euphoria that greeted that announcement, fears have returned and shares and the euro have begun falling again.
On Friday, there were sharp falls in European stock markets, with Spain`s stock market dropping 6.6% and France main share index down 4.6%.
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